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Click here for a current- at a glance look at the Snohomish County Real Estate Housing Forecast… continue reading for our expanded report…
In November we saw that determined buyers are purchasing homes, with pent-up demand driving the market. December is traditionally the low point for new listings coming onto the market because of the holiday season and inclement weather. Several industry leaders commented on positive signs, fueled by that pent-up demand. December interest rates are lower than they were a month ago. Economists forecast lower interest rates on the horizon, as the economy works through lowering inflation. Homebuyers are currently purchasing at market price with the possibility to refinance when rates decrease. In the meantime, some buyers are purchasing with five-year or seven-year adjustable-rate mortgages with lower interest rates and monthly payments.
Sellers who price to the market are attracting showings and receiving “good” offers. We have seen an uptick in open houses, with healthy traffic during October & November. We anticipate brisk sales across the holidays and into the new year with inventory building toward the end of December into January. We are telling folks to get pre-approved and have all their documents in so if the market does take a swing, they will be ready to seize the opportunity.
Fifteen of the 26 counties reported price increases from a year ago, with 11 counties having declines. All four counties in the Puget Sound region, experienced modest price gains, ranging from about 1.1% in Kitsap County to 2.9% in Snohomish County.
The data show we’re in a changing market. High-interest rates, doubled inventory levels, anxious lenders, contracts written with negotiations for repairs, closing costs, and other sundry things – all of these have returned to the market. Sellers realize they must actually compete with other sellers to gain a buyer’s attention.
Even though inventory has grown we are still below pre-pandemic seasonal levels. There is a shortage of unsold inventory, especially in the more affordable and mid-price ranges where approximately 80% of transactions take place within each market. We have strong reports of new listings going under contract within the first 30 days.
Looking ahead, some chief economists are among those that are expecting interest rates to drop. Early in the new year, we are expecting the Fed to start pulling back from its aggressive policy stance, and this will allow rates to begin slowly stabilizing. I believe rates will remain above 6% until fall 2023, then they should dip into the 5% range. While this is higher than we have become used to, it’s still more than 2% lower than the historic average.
We do not expect supply to grow significantly with inventory levels remaining well below their long-term average. It’s unlikely we’ll see a buyer’s market in 2023, but I do expect a return to a far more balanced one!
Snohomish County reported 698 new listings, 1,452 active listings, 773 pending sales, and 768 closed sales. 1.89 months of inventory and a median price of $677,475. This means there is just under two months of inventory in Snohomish County. As interest rates change we will keep a close eye on these numbers, for now, you can still expect strong offers, traditional contingencies added to the contract, and some waived contingencies at the median price point and in desired locations. Homes may sit on the market a little longer than in the prior months of the housing frenzy. Sellers need to price competitively to get their homes sold. Sellers that are not pricing their homes accurately, will result in their home sitting.
Where do we go from here?
Now is still a great time to sell your home as home values are holding strong and we do have pent-up buyer demand, the overpriced have tapered off, so sellers need to be reasonable in this more balanced market. Buyers now have increased inventory, giving them options. Buyers have more homes to choose from and we are seeing contingencies and finance options return. Although we are seeing some price adjustments I don’t recommend postponing purchasing, home values are expected to continue to rise in our area. If you think you are saving money by waiting, you should run the numbers. Economists and pundits in real estate all say buy now. The anticipated increase in equity across the next two-to-four years will be astonishing.
Northwest MLS Market Report
Here is my Northwest MLS Market Report for the month of December 2022 (all reports and stats are from the prior month of November 2022). Last month there were 2.36 months of supply system-wide. Interest rates are still a concern for buyers, creative financing has returned. For the most part, we are getting back to the “Pre-COVID” real estate market which was considered very strong just not like the frenzied market we have experienced the last few years.
We continue to see price appreciation over last year. Potential sellers should act now as this is still a good time to put your home on the market. I will continue to follow the market trends and inform you each month as we go through winter.
Let’s get coffee, chat, or email back and forth if you have any questions about selling or buying real estate. If you want to know what your home is worth, have an interest in a particular area, or want to simply be put on a search to follow the market and home prices just let me know. My team & I have many tools to help you make good investment decisions!
A look at Snohomish County Housing Statistics
November began with:
- 698 New Listings
- 1.89 months’ worth of Inventory
- Median home price of $677,475
Let’s break it down per city:
|CITIES||MEDIAN SALES PRICE||% CHANGE OVER LAST YEAR||MONTHS OF INVENTORY|
What Does This Data Mean?
Inventory levels continue to be an issue in some places. Most places currently have under a 2-month supply available, we are still very much in a seller-based market, however, we are moving to a balanced market. A balanced market is said to be when we have approximately 4-6 months” worth of inventory. Due to the ongoing demand for real estate in the Greater Seattle area, I would expect to see a robust real estate market going through 2022 and into 2023. Prices are continuing to increase in the North Sound Region, especially along the I-5 corridor.
What Does This Mean If You Are Buying A Home in Snohomish County
If you are buying a home in Snohomish County you are going to see more inventory available, you don’t have to act as quickly, buyers are out there and very serious, driving up prices in some cases. Sellers are accepting contingencies again. Buyers looking for single-family homes and condos are seeing increases in prices, interest rates are unknown, and we are still in the 10% of low rates if you look back 50 years. Buyers need their financing in order, pre-approvals available, and please, bring an experienced agent to the table when forming an offer and guiding through negotiations.
This is the perfect time to sign up and receive email notifications when a new home is listed in the Snohomish County real estate market. Email notifications and instant alerts give you an advantage over other buyers looking for homes. Fill out our form below so we can keep you ahead of the competition!
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What Does This Mean If You Are Selling A Home In Snohomish County
If you are selling a home in Snohomish County buyers are eager and shopping. This is still a seller’s market and most sellers are getting their asking price and commonly getting over their list price.
Competition means your home needs to be priced competitively. Double-check to make sure your property is in optimum selling condition.
Check the home valuation calculator to get an estimated value of your home. Contact us to get a comprehensive report. We work closely with sellers to create a marketing strategy that gets your listing in front of buyers wanting to buy.
What’s Your Home Worth?
Instant Online Home Value Report
Month-by-Month Comparison and In-depth Market Reports
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About Amy Wagner – Prime Listings Group
“When You Do What You Love…People Love What You Do”
As a real estate agent, investor and managing broker of Keller Williams North Sound, Amy particularly loves helping people sell their homes fast and teaching and helping people build wealth through real estate investments such as multi-family homes, land development and the fix & flip of houses. She founded Prime Listings Group on the principles of doing better and giving more. We have local experience on our side and we promise to give more than expected. You’ve come to the right place. At PLG you can expect better!
“Great service from the start until closing….”
Amy sold my house quick and for more than I expected. Her whole team was excellent. Great service from the start until closing 10 out of 10⭐️’s!!! Thank you 🙏🏽 Amy Wagner